Forex market volatility is when the market becomes unsteady. The price level of the currency pairs go up and down very quickly and if you are trading in Forex market volatility, it is better if you step out of the market. A lot of traders have tried to make money in volatility but not all of them have succeeded. Most of these traders have failed in Forex and if you are thinking that you can set an exception, you should stay out of Forex market to tare when the market is not following its patterns and is volatile.
This article is going to tell you why many traders could not resist trading in market volatile. It is also going to explore how to make money in volatility if you cannot help to trade in Forex. The best choice of market volatility for the traders is not to trade in Forex if the market is volatile. You may think you are going to lose many chances as you will make more money when you do not trade in the volatile Forex market.
Why could traders not resist trading in volatility?
Forex traders make money by selling and buying currency pairs. The market is always going up and down but when the price level is moving in a natural pattern, this market is steady and traders trade the market. When this price level is not steady and it moves, the market is said to be volatile. This volatility is an important part for the traders to make money in Forex. If the price level of the different currency pairs does not move, how you are going to make money? This is why many traders see this volatility as their ticket to get rich. Though it may sound tempting traders have lost their money by trying to be rich in volatility.
How to make money in volatility?
If you are determined to make money in volatility, we should say that you must have vast experience and knowledge of the Forex market. There are some things that you cannot see with your physical eyes and you need the wisdom to fell that. Professional traders do not trade in volatility as they know chances are always coming in Forex. If you want to make a trade, trade in demo accounts to see the result of your volatility trading. If you can make consistent profit in Forex volatility, you can trade in live accounts to make money.
Some of you might argue with us that market volatility is the best thing that we can have as a trader. But it’s only true for the experienced professional. If you think that you can make a significant improvement in your profit factor by news trading then you are wrong. You need to learn about news trading first. Many novice traders have blown their trading deposit during news trading. You can also copy other traders. So extreme level of market volatility doesn’t mean that you will be making a profit all the time. In fact, the professional traders reduce their lot size to save their investment during the major market announcement.
If you prefer the conservative way of trading then you should always stay away from the market volatility. There is no need for you to take the unnecessary risk since it greatly increases the risk exposure. Never take more than 1% risk as a full-time trader as the outcome of this market is totally random. If you are not sure how to trade this market then start trading the major asset in the demo account. Demo trading account will give you the perfect platform to master all the necessary skills. Learn about the price action trading system and do the technical analysis in the higher time frame. Never take any unnecessary risk or else you will have to face heavy loss. Always trade along with the market trend and be more concern to save your investment.